Fourth quarter 2015 pretax income increased
15%
Fourth quarter 2015 net income per diluted
share of $0.24 compared with $0.31 last year
Full year net income per diluted share of
$1.03 compared with $0.60 last year
Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the
fourth quarter and fiscal year ended January 30, 2016.
Financial Highlights – 13-week fourth
quarter ended January 30, 2016
Total sales in the 13 weeks ended January 30, 2016 decreased
2.8% to $176.1 million compared with $181.1 million in the 13 weeks
ended January 31, 2015. Comparable store sales decreased 5.0% in
the fourth quarter.
Net income was $3.5 million, or $0.24 per diluted share, in the
fourth quarter of 2015 compared with $4.7 million, or $0.31 per
diluted share, in last year’s fourth quarter. While net income
declined in the fourth quarter of 2015, pretax income increased 15%
to $6.0 million from $5.2 million in the fourth quarter of 2014.
The significant difference between the improvement in pretax income
and the decline in net income was attributable to an unusually low
effective income tax rate in 2014’s fourth quarter due to a benefit
from income tax credits.
Financial Highlights – 52-week fiscal
year ended January 30, 2016
Total sales in the 52 weeks ended January 30, 2016 increased
1.9% to $683.8 million compared with $670.8 million in the 52 weeks
ended January 31, 2015. Comparable store sales decreased 0.1% for
the full year.
Net income was $15.5 million, or $1.03 per diluted share, in
fiscal 2015 compared with $9.0 million, or $0.60 per diluted share,
in fiscal 2014.
The Company opened 13 stores, relocated or expanded 13 others,
and closed three stores in fiscal 2015.
As previously announced, the Board of Directors has declared a
quarterly dividend payment of $0.06 per share, which will be paid
on March 15, 2016 to stockholders of record as of March 1,
2016.
Investor Conference Call and
Webcast
Citi Trends will host a conference call today at 9:00 a.m. ET.
The number to call for the live interactive teleconference is
(212) 231-2912. A replay of the conference call will be
available until March 18, 2016, by dialing (402) 977-9140 and
entering the passcode, 21803639.
The live broadcast of Citi Trends’ conference call will be
available online at the Company’s website, www.cititrends.com,
under the Investor Relations section, beginning today at 9:00 a.m.
ET. The online replay will follow shortly after the call and will
be available for replay for one year.
During the conference call, the Company may discuss and answer
questions concerning business and financial developments and trends
that have occurred after quarter-end. The Company’s responses to
questions, as well as other matters discussed during the conference
call, may contain or constitute information that has not been
disclosed previously.
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of urban fashion
apparel and accessories for the entire family. The Company operates
526 stores located in 31 states. Citi Trends’ website address is
www.cititrends.com. CTRN-G
Forward-Looking
Statements
All statements other than historical facts contained in this
news release, including statements regarding our future financial
results and position, business policy and plans and objectives of
management for future operations, are forward-looking statements
that are subject to material risks and uncertainties. The words
“believe,” “may,” “could,” “plans,” “estimate,” “continue,”
“anticipate,” “intend,” “expect” and similar expressions, as they
relate to Citi Trends, are intended to identify forward-looking
statements. Statements with respect to earnings guidance are
forward-looking statements. Investors are cautioned that any such
forward-looking statements are subject to the finalization of the
Company’s year-end financial and accounting procedures, are not
guarantees of future performance or results and are inherently
subject to risks and uncertainties, some of which cannot be
predicted or quantified. Actual results or developments may differ
materially from those included in the forward-looking statements as
a result of various factors which are discussed in Citi Trends,
Inc. filings with the Securities and Exchange Commission. These
risks and uncertainties include, but are not limited to,
uncertainties relating to economic conditions, growth risks,
consumer spending patterns, competition within the industry,
competition in our markets and the ability to anticipate and
respond to fashion trends. Any forward-looking statements by the
Company, with respect to earnings guidance, the declaration and
payment of dividends, the Company’s share repurchase program, or
otherwise, are intended to speak only as of the date such
statements are made. Except as required by applicable law,
including the securities laws of the United States and the rules
and regulations of the Securities and Exchange Commission, Citi
Trends does not undertake to publicly update any forward-looking
statements in this news release or with respect to matters
described herein, whether as a result of any new information,
future events or otherwise.
CITI TRENDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(in thousands, except per share data) Thirteen
Weeks Ended Thirteen Weeks Ended January 30, 2016
January 31, 2015 (unaudited) (unaudited) Net sales $ 176,063
$ 181,143 Cost of sales (exclusive of depreciation shown
separately below) (108,526 ) (113,567 ) Selling, general and
administrative expenses (57,087 ) (57,515 ) Depreciation
(4,555 ) (4,871 ) Income from operations 5,895 5,190
Interest income 117 52 Interest expense (41 ) (48 )
Income before income taxes 5,971 5,194 Income tax expense
(2,499 ) (521 ) Net income $ 3,472 $ 4,673
Basic net income per common share $ 0.24 $ 0.31
Diluted net income per common share $ 0.24 $ 0.31
Weighted average shares used to compute basic
net income per share 14,651 14,989
Weighted average shares used to compute diluted net income per
share 14,723 15,128
Fifty-Two Weeks Ended Fifty-Two Weeks
Ended January 30, 2016 January 31, 2015
(unaudited) (unaudited) Net sales $ 683,791 $ 670,840 Cost
of sales (exclusive of depreciation shown separately below)
(416,779 ) (418,416 ) Selling, general and administrative expenses
(224,218 ) (221,041 ) Depreciation (18,577 ) (20,177 ) Asset
impairment - (83 ) Income (loss) from
operations 24,217 11,123 Interest income 339 187 Interest expense
(242 ) (200 ) Income (loss) before income taxes
24,314 11,110 Income tax (expense) benefit (8,787 )
(2,144 ) Net income $ 15,527 $ 8,966 Basic net
income per common share $ 1.04 $ 0.60 Diluted net
income per common share $ 1.03 $ 0.60
Weighted average shares used to compute basic net income per share
14,996 14,961 Weighted average shares
used to compute diluted net income per share 15,056
15,020
CITI TRENDS,
INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands) January 30, 2016 January 31,
2015 (unaudited) (unaudited) Assets: Cash and cash equivalents
$ 39,116 $ 74,514 Short-term investment securities 32,671 15,850
Inventory 137,020 131,057 Other current assets 18,321 19,936
Property and equipment, net 50,632 47,603 Long-term investment
securities 30,890 22,447 Other noncurrent assets 5,858
6,966 Total assets $ 314,508 $ 318,373
Liabilities and Stockholders’ Equity:
Accounts payable $ 67,419 $ 72,245 Accrued liabilities 27,742
29,172 Other current liabilities 497 585 Noncurrent liabilities
6,616 5,749 Total liabilities 102,274
107,751
Total stockholders’ equity
212,234 210,622
Total liabilities and stockholders’
equity
$ 314,508 $ 318,373
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160311005055/en/
Citi Trends, Inc.Bruce Smith, 912-443-2075Chief Operating
Officer and Chief Financial OfficerorJason Mazzola,
912-443-3990President and Chief Executive Officer
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